Singapore Real Estate | ||
Singapore real estate is highly cyclical. Historically, cycles average 11 years from peak to peak, and the current price cycle, whose upswing began in mid-2004, is expected to peak in 2010 when many major projects are completed (for example the Integrated Resorts and Marina Bay Financial Centre). Asia Property Consultants has first-hand experience of the Singapore real estate market, and consequently we are ideally placed to offer honest, practical and potentially cost-saving advice to international property investors. The following will help you determine whether Singapore real estate is the optimum investment strategy to fulfill your objectives:
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1.
| Although Singapore real estate prices have been booming since 2006, the local economy faces the triple threat of: i) weaker exports. For example, International Enterprise Singapore has further cut its 2008 growth forecast for non-oil domestic exports to between -4.0 to -2.0 per cent, down 6 percentage points from the previous projection of 2.0 to 4.0 per cent, which was already cut from earlier projection of 4% to 6%. | 
Source: Urban Development Authority (URA) |
ii) slower-than-expected economic growth; and
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iii) rising inflation, reaching a 26-year high of 7.5% in April 2008.
The Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) have revised their
projection for 2008 CPI inflation from 4.5-5.5% to 5-6%.
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2.
| The Singapore property market remains vulnerable to global financial market turbulence and uncertainties over the US sub-prime mortgage crisis, which could negatively affect Singapore's economic growth.
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3.
| Weakening sentiment in the luxury residential sector of the Singapore property market is highlighted by Kuwait Finance House's decision to withdraw its acquisition of Phase One of Goodwood Residence in Bukit Timah for S$818.4 million. On the other hand, Merrill Lynch upgraded its investment rating for two large Singapore property developers, CapitaLand and City Developments, in May 2008.
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4.
| International entrepreneurs and property investors buy Singapore real estate for the following reasons: i) As residential real estate for entrepreneurs living in or relocating to Singapore; ii) As commercial real estate to support your business activities in Singapore; and iii) For property investment to enhance global assets. | |
5.
| Singapore real estate investors pay an annual property tax based on rental income. Singapore property tax is payable by the owner regardless of where in the world they live and regardless of nationality.
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6.
| Singapore is one of the most attractive cities to live in in Asia, making Singapore real estate investment popular among global investors. Mercer Human Resource Consulting rates Singapore as the world's 32nd most livable country in its 2008 Quality of Living Survey (2 positions higher than in 2007). To support real estate investment, Asia Property Consultants offers relocation services including tours of local services, Singapore schools, supermarkets, transport etc.
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7.
| Foreigners are permitted to purchase Singapore real estate, and thereafter benefit from selling Singapore property. Foreigners and permanent residents (PRs) accounted for almost one quarter of all residential sales in Singapore real estate in 2007. However, foreign investors wishing to purchase Singapore real estate with land are required to obtain approval from the Singapore Land Authority (SLA). That said, in 2008 the availability of Singapore property with land remains tight - according to the SLA only 1,872 units with land are under construction and only another 2,579 are planned from 2008 to 2013.
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8.
| Under the Singapore Economic Development Board's (EDB) Global Investor Programme (GIP), foreigners buying Singapore real estate obtain Permanent Residence (PR) if they invest a minimum of S$2 million (US$1.3 million).
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9.
| Asia Property Consultants independently assists international property investors effectively and efficiently manage all aspects relating to the purchase and sale of Singapore real estate. Our Firm draws upon the latest residential and commercial real estate market information, enabling us to offer honest, reliable opinions on i) Singapore real estate cycles ii) the current and future outlook for Singapore real estate and iii) expected interest rate and currency movements and their impacts on Singapore real estate. In addition to our own experiences, our sources include statistics and forecasts from reliable, reputable sources including the Singapore Economic Development Board, the Urban Redevelopment Authority, the Land Transport Authority and the Monetary Authority of Singapore.
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10.
| Because of the global credit crunch, it is increasingly difficult to obtain finance to support Singapore real estate investment. However, we assist clients obtain property finance of up to 80% of the valuation or purchase price of the Singapore property, whichever is lower, according to Monetary Authority of Singapore (MAS) guidelines. Interest rates from Singapore banks are available as low as 2.8%. Asia Property Consultants works with leading international banks in Singapore to obtain housing loans for clients, including ANZ Bank, DBS Bank and OCBC Bank.
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11.
| Our Firm will organise property valuations for a prospective Singapore real estate purchase, including arranging inspections, surveys and valuations.
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12.
| Asia Property Consultants will also appoint and supervising a local lawyer to assist with the purchase or sale of Singapore real estate. Furthermore, we advise on the strength of local laws to protect asset ownership (including Singapore real estate) by foreign investors.
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| Contact Us | ||
For more information on Singapore real estate, call our Singapore office at (+65) 67350120 or contact at email@healyconsultants.com
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